DIT AMCON Distributing Co

AMCON Distributing Company (“AMCON”) (NYSE American: DIT), an Omaha, Nebraska based consumer products company, is pleased to announce fully diluted earnings per share of $28.59 on net income available to common shareholders of $16.7 million for the fiscal year ended September 30, 2022.

“We are pleased with our fiscal 2022 results. Our entire organization did an outstanding job this year, securing the products and staffing necessary for success in the convenience distribution industry. AMCON has a long-standing core operating philosophy of providing a superior level of customer service. The customer-centric approach we embrace has guided us through these challenging times and helped ensure that AMCON’s customers have received a consistent and timely flow of goods and services,” said Christopher H. Atayan, AMCON’s Chairman and Chief Executive Officer. He further noted, “We continue to actively seek strategic acquisition opportunities for operators who want to align with our customer-centric management philosophy and further the legacy of their enterprises.”

The wholesale distribution segment reported revenues of $2.0 billion and operating income of $35.6 million for fiscal 2022 and the retail health food segment reported revenues of $46.2 million and operating income of $0.5 million for fiscal 2022.

“We are investing heavily in our foodservice and technology platforms and associated staffing for these strategic focus areas. In addition, AMCON is developing a new 173,500 square foot facility in Springfield, Missouri which will support our customers’ growth initiatives. We are also looking to expand our geographic reach, to serve our customers as they grow their store footprint,” said Andrew C. Plummer, AMCON’s President and Chief Operating Officer.

Charles J. Schmaderer, AMCON’s Chief Financial Officer said, “At September 30, 2022, our shareholders’ equity was $92.8 million. During fiscal 2022, we turned our inventory 19 times and continue to prioritize high levels of daily liquidity.” Mr. Schmaderer also added, “We are delighted with the results of our investment in Team Sledd, LLC.”

AMCON’s Healthy Edge Retail Group plays an important role in the health and wellness of the communities it serves. Our long-term relationship with the organic/natural products vendor community has enabled our stores to meet the demands of our customers for total wellness solutions. Our strategy is to offer a broad selection of the highest quality organic and natural merchandise available supported by a high degree of customer service not found at other big box retailers within our industry. We continue to rationalize our base of stores as well as developing new store opportunities.

AMCON is a leading Convenience Distributor of consumer products, including beverages, candy, tobacco, groceries, foodservice, frozen and refrigerated foods, automotive supplies and health and beauty care products with distribution centers in Illinois, Missouri, Nebraska, North Dakota, South Dakota, Tennessee and West Virginia. AMCON, through its Healthy Edge Retail Group, operates nineteen (19) health and natural product retail stores in the Midwest and Florida.

This news release contains forward-looking statements that are subject to risks and uncertainties and which reflect management's current beliefs and estimates of future economic circumstances, industry conditions, Company performance and financial results. A number of factors could affect the future results of the Company and could cause those results to differ materially from those expressed in the Company's forward-looking statements including, without limitation, availability of sufficient cash resources to conduct its business and meet its capital expenditures needs and the other factors described under Item 1.A. of the Company’s Annual Report on Form 10-K. Moreover, past financial performance should not be considered a reliable indicator of future performance. Accordingly, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 with respect to all such forward-looking statements.

Visit AMCON Distributing Company's web site at: www.amcon.com

AMCON Distributing Company and Subsidiaries

CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

 

 

 

 

September

 

September

 

 

2022

 

2021

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash

 

$

431,576

 

 

$

519,591

 

Accounts receivable, less allowance for doubtful accounts of $2.5 million at September 2022 and $0.9 million September 2021

 

 

62,367,888

 

 

 

35,844,163

 

Inventories, net

 

 

134,654,637

 

 

 

95,212,085

 

Income taxes receivable

 

 

819,595

 

 

 

—

 

Prepaid expenses and other current assets

 

 

12,702,084

 

 

 

4,999,125

 

Total current assets

 

 

210,975,780

 

 

 

136,574,964

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

48,085,520

 

 

 

16,012,524

 

Operating lease right-of-use assets, net

 

 

19,941,009

 

 

 

17,846,529

 

Note receivable, net of current portion

 

 

—

 

 

 

3,325,000

 

Goodwill

 

 

5,277,950

 

 

 

4,436,950

 

Other intangible assets, net

 

 

2,093,113

 

 

 

500,000

 

Equity method investment

 

 

—

 

 

 

9,380,343

 

Other assets

 

 

2,751,155

 

 

 

334,819

 

Total assets

 

$

289,124,527

 

 

$

188,411,129

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

39,962,363

 

 

$

24,235,042

 

Accrued expenses

 

 

14,446,210

 

 

 

11,468,955

 

Accrued wages, salaries and bonuses

 

 

7,811,207

 

 

 

4,489,852

 

Income taxes payable

 

 

—

 

 

 

867,160

 

Current operating lease liabilities

 

 

6,454,473

 

 

 

5,513,390

 

Current maturities of long-term debt

 

 

1,595,309

 

 

 

561,202

 

Current mandatorily redeemable non-controlling interest

 

 

1,712,095

 

 

 

—

 

Total current liabilities

 

 

71,981,657

 

 

 

47,135,601

 

 

 

 

 

 

 

 

Credit facilities

 

 

91,262,438

 

 

 

43,650,865

 

Deferred income tax liability, net

 

 

2,328,588

 

 

 

1,531,228

 

Long-term operating lease liabilities

 

 

13,787,721

 

 

 

12,669,157

 

Long-term debt, less current maturities

 

 

7,384,260

 

 

 

5,054,265

 

Mandatorily redeemable non-controlling interest, less current portion

 

 

9,446,460

 

 

 

—

 

Other long-term liabilities

 

 

103,968

 

 

 

757,387

 

 

 

 

 

 

 

 

Shareholders’ equity:

 

 

 

 

 

 

Preferred stock, $.01 par value, 1,000,000 shares authorized

 

 

—

 

 

 

—

 

Common stock, $.01 par value, 3,000,000 shares authorized, 584,789 shares outstanding at September 2022 and 551,369 shares outstanding at September 2021

 

 

9,168

 

 

 

8,834

 

Additional paid-in capital

 

 

26,903,201

 

 

 

24,918,781

 

Retained earnings

 

 

96,784,353

 

 

 

83,552,298

 

Treasury stock at cost

 

 

(30,867,287

)

 

 

(30,867,287

)

Total shareholders’ equity

 

 

92,829,435

 

 

 

77,612,626

Total liabilities and shareholders’ equity

$

289,124,527

 

 

$

188,411,129

AMCON Distributing Company and Subsidiaries

CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

 

Fiscal Years Ended September

 

 

2022

 

2021

Sales (including excise taxes of $467.1 million and $403.9 million, respectively)

 

$

2,010,798,385

 

 

$

1,672,378,581

 

Cost of sales

 

 

1,883,078,819

 

 

 

1,571,829,805

 

Gross profit

 

 

127,719,566

 

 

 

100,548,776

 

Selling, general and administrative expenses

 

 

101,474,359

 

 

 

79,631,140

 

Depreciation and amortization

 

 

3,643,840

 

 

 

3,093,017

 

 

 

 

105,118,199

 

 

 

82,724,157

 

Operating income

 

 

22,601,367

 

 

 

17,824,619

 

 

 

 

 

 

 

 

Other expense (income):

 

 

 

 

 

 

Interest expense

 

 

2,249,552

 

 

 

1,339,560

 

Change in fair value of mandatorily redeemable non-controlling interest

 

 

1,476,986

 

 

 

—

 

Other (income), net

 

 

(2,600,675

)

 

 

(203,228

)

 

 

 

1,125,863

 

 

 

1,136,332

 

Income from operations before income taxes

 

 

21,475,504

 

 

 

16,688,287

 

Income tax expense

 

 

6,473,380

 

 

 

4,501,000

 

Equity method investment earnings, net of tax

 

 

1,670,133

 

 

 

3,357,978

 

Net income available to common shareholders

 

$

16,672,257

 

 

$

15,545,265

 

 

 

 

 

 

 

 

Basic earnings per share available to common shareholders

 

$

29.37

 

 

$

28.24

 

Diluted earnings per share available to common shareholders

 

$

28.59

 

 

$

27.36

 

 

 

 

 

 

 

 

Basic weighted average shares outstanding

 

 

567,697

 

 

 

550,551

 

Diluted weighted average shares outstanding

 

 

583,062

 

 

 

568,103

 

 

 

 

 

 

 

 

Dividends paid per common share

 

$

5.72

 

 

$

5.72

 

AMCON Distributing Company and Subsidiaries

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

 

 

 

Common Stock

 

Treasury Stock

 

Paid-in

 

Retained

 

 

 

 

 

Shares

 

Amount

 

Shares

 

Amount

 

Capital

 

Earnings

 

Total

Balance, October 1, 2020

 

869,867

 

$

8,697

 

(332,152

)

 

$

(30,861,549

)

 

$

24,282,058

 

$

71,362,334

 

 

$

64,791,540

 

Dividends on common stock, $5.72 per share

 

—

 

 

—

 

—

 

 

 

—

 

 

 

—

 

 

(3,355,301

)

 

 

(3,355,301

)

Compensation expense and issuance of stock in connection with equity-based awards

 

13,722

 

 

137

 

—

 

 

 

—

 

 

 

636,723

 

 

—

 

 

 

636,860

 

Repurchase of common stock

 

—

 

 

—

 

(68

)

 

 

(5,738

)

 

 

—

 

 

—

 

 

 

(5,738

)

Net income available to common shareholders

 

—

 

 

—

 

—

 

 

 

—

 

 

 

—

 

 

15,545,265

 

 

 

15,545,265

 

Balance, September 30, 2021

 

883,589

 

$

8,834

 

(332,220

)

 

$

(30,867,287

)

 

$

24,918,781

 

$

83,552,298

 

 

$

77,612,626

 

Dividends on common stock, $5.72 per share

 

—

 

 

—

 

—

 

 

 

—

 

 

 

—

 

 

(3,440,202

)

 

 

(3,440,202

)

Compensation expense and issuance of stock in connection with equity-based awards

 

33,420

 

 

334

 

—

 

 

 

—

 

 

 

1,984,420

 

 

—

 

 

 

1,984,754

 

Net income available to common shareholders

 

—

 

 

—

 

—

 

 

 

—

 

 

 

—

 

 

16,672,257

 

 

 

16,672,257

 

Balance, September 30, 2022

 

917,009

 

$

9,168

 

(332,220

)

 

$

(30,867,287

)

 

$

26,903,201

 

$

96,784,353

 

 

$

92,829,435

 

AMCON Distributing Company and Subsidiaries

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

 

September

 

September

 

 

2022

 

2021

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

Net income available to common shareholders

 

$

16,672,257

 

 

$

15,545,265

 

Adjustments to reconcile net income available to common shareholders to net cash flows from (used in) operating activities:

 

 

 

 

 

 

Depreciation

 

 

3,572,953

 

 

 

3,093,017

 

Amortization

 

 

70,887

 

 

 

—

 

Equity method investment earnings, net of tax

 

 

(1,670,133

)

 

 

(3,357,978

)

Gain on re-valuation of equity method investment to fair value

 

 

(2,387,411

)

 

 

—

 

Gain on sales of property and equipment

 

 

(140,139

)

 

 

(9,864

)

Equity-based compensation

 

 

3,103,320

 

 

 

2,415,156

 

Deferred income taxes

 

 

797,360

 

 

 

(275,347

)

Provision for losses on doubtful accounts

 

 

(32,420

)

 

 

50,000

 

Inventory allowance

 

 

212,637

 

 

 

37,708

 

Change in fair value of mandatorily redeemable non-controlling interest

 

 

1,476,986

 

 

 

—

 

Changes in assets and liabilities net of effects of business acquisition:

 

 

 

 

 

 

Accounts receivable

 

 

3,032,876

 

 

 

(1,615,734

)

Inventories

 

 

3,240,946

 

 

 

3,721,980

 

Prepaid and other current assets

 

 

(5,344,754

)

 

 

(2,732,480

)

Equity method investment distributions

 

 

1,095,467

 

 

 

1,392,730

 

Other assets

 

 

(730,391

)

 

 

48,967

 

Accounts payable

 

 

332,400

 

 

 

1,998,494

 

Accrued expenses and accrued wages, salaries and bonuses

 

 

2,482,409

 

 

 

1,164,828

 

Other long-term liabilities

 

 

(653,419

)

 

 

(169,854

)

Income taxes payable and receivable

 

 

(2,241,755

)

 

 

(371,248

)

Net cash flows from (used in) operating activities

 

 

22,890,076

 

 

 

20,935,640

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

Purchase of property and equipment

 

 

(14,691,799

)

 

 

(1,525,882

)

Proceeds from sales of property and equipment

 

 

152,000

 

 

 

55,728

 

Principal payment received on note receivable

 

 

175,000

 

 

 

—

 

Cash acquired in business acquisition

 

 

7,958

 

 

 

—

 

Net cash flows from (used in) investing activities

 

 

(14,356,841

)

 

 

(1,470,154

)

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

Borrowings under revolving credit facilities

 

 

2,042,679,688

 

 

 

1,663,751,276

 

Repayments under revolving credit facilities

 

 

(2,041,106,459

)

 

 

(1,682,072,093

)

Proceeds from borrowings on long-term debt

 

 

—

 

 

 

3,000,000

 

Principal payments on long-term debt

 

 

(4,909,548

)

 

 

(510,177

)

Proceeds from exercise of stock options

 

 

173,590

 

 

 

—

 

Repurchase of common stock

 

 

—

 

 

 

(5,738

)

Dividends on common stock

 

 

(3,440,202

)

 

 

(3,355,301

)

Settlement and withholdings of equity-based awards

 

 

(1,280,749

)

 

 

(415,057

)

Distributions to non-controlling interest

 

 

(737,570

)

 

 

—

 

Net cash flows from (used in) financing activities

 

 

(8,621,250

)

 

 

(19,607,090

)

Net change in cash

 

 

(88,015

)

 

 

(141,604

)

Cash, beginning of period

 

 

519,591

 

 

 

661,195

 

Cash, end of period

 

$

431,576

 

 

$

519,591

 

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

Cash paid during the period for interest

 

$

2,210,828

 

 

$

1,353,985

 

Cash paid during the period for income taxes

 

 

7,915,225

 

 

 

5,138,454

 

 

 

 

 

 

 

 

Supplemental disclosure of non-cash information:

 

 

 

 

 

 

Equipment acquisitions classified in accounts payable

 

$

91,656

 

 

$

128,249

 

Effect of business acquisition

 

 

23,308,624

 

 

 

—

 

Issuance of common stock in connection with the vesting and exercise of equity-based awards

 

 

2,280,783

 

 

 

949,812

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20221123005461/en/

For Further Information Contact: Charles J. Schmaderer AMCON Distributing Company Ph 402-331-3727